May 28, 2020 – The new Arena under construction by the City of Savannah will continue to move forward for an on-time completion after the City Council approved Contract Modification No. 2 with AECOM/Hunt to allow for early release packages for the new Arena in an Amount for up to $22,045,582. The Arena is set for completion by Feb. 2022.
This is the second release package for budgeted funds to keep the construction moving forward, despite some delays that the Construction Manager at Risk has experienced in getting in all of the subcontractor bids during the COVID-19.
The $22 million in funds are part of the $120 maximum construction costs of the overall budget of $165 million for the Arena project which is being funded primarily by SPLOST dollars. The total project costs included all of the initial consulting costs on the viability and size of a new arena, and the architectural and construction design phases, according to City Manager Pat Monahan. While the city staff had hoped to have the final guaranteed maximum construction price presented by AECOM/Hunt in May, it will now be presented to the City Council in July 2020 due to issues with subcontractors impacted during the April and May due to COVID-19.
Alderwoman-at-Large Kesha Gibson-Carter made a motion to postpone approving the release of funds until the Construction Manager at Risk presents the final, guaranteed construction total cost even though doing so would likely result in a delay in the project being completed on time, Monahan warned, and even though he explained that the total cost will not exceed $120 million. There is the possibility that costs will come in below that figure with many sub-contractors potentially bidding more competitively due to the economic downturn created by COVID-19.
Approximately 60 subcontractors have to bid on various portions of the construction project in order for the Construction-Manager-at-Risk to present their projection on the final construction price. Bids have to be secured from subcontractors and vendors for all aspects of the structure - such as the steel girders, roofing and windows - to interior equipment such as HVAC systems, food service equipment and the scoreboard. The sitework, underground infrastructure and pilings have been completed.
Her motion failed. Voting with her to delay was Blakely, Shabazz and Lanier. The motion to approve passed 6-3, with Shabazz then voting to approve the early release packages for up to $22,045,582.
Included in the list of expenditures of the disbursement of the funds are for:
Concrete $ 296,146 Covers overrun of LOA
Precast $ 976,602 Only covers portion of Scope
Structural Steel $ 5,070,000 Covers balance of scope
Curtainwall & Interior Glazing $ 1,000,000 Only covers portion of Scope
Food Service $ 700,000 Only covers portion of Scope
Scoreboards $ 600,000 Only covers portion of Scope
Ice Floor $ 2,980,000 Design Build Service
Fire Protection $ 400,000 Only covers portion of Scope
Plumbing $ 1,345,000 Only covers portion of Scope
HVAC $ 2,500,000 Only covers portion of Scope
Electrical $ 2,352,000 Only covers portion of Scope
Sports Lighting $ 225,000 Only covers portion of Scope
Low Voltage/Tech $ 990,000 Only covers portion of Scope
Subtotal $ 19,434,748
Subcontractor Bonds 1.25% $ 242,934
Construction Contingency 3.00% $ 583,042
General Conditions (thru 8/30/20) $ 864,146
General Liability Insurance 0.70% $ 154,319
CM Bond 0.80% $ 176,365
Subtotal $ 21,455,554
CM Fee 2.75% $ 590,028
TOTAL $ 22,045,582